Fitch's Warning Spooks Investors

By

Dan Fitzpatrick And

Jonathan Cheng

November 17, 2011

In the latest sign of jittery markets racked by hair-trigger selling, investors on Wednesday took fright at a credit-firm report that contained little new information but warned of escalating risks facing U.S. banks in the European debt crisis.

Fitch Ratings, in a paper issued Wednesday afternoon, said U.S. lenders "could be greatly affected if contagion continues to spread beyond the stressed European markets" of Greece, Ireland, Italy, Portugal and Spain. The No. 3 U.S. rating company didn't change its ratings...